Paying off your mortgage loan is never easy as this involves monthly payments. Many people find they don’t have enough funds to cover the repayments, let alone the bills. If you don’t pay on time, you could face the possibility of being evicted from your home or having additional late fees added to your mortgage. To stop this from happening, here are a few tips to pay off your mortgage loan in Syracuse faster. Let’s take a look:
1) Go for Bi-weekly Mortgage Payments
Whether you take out a mortgage loan from a credit union like https://www.empowerfcu.com or from another bank, you should have the option to pay weekly, monthly or fortnightly. Paying your mortgage payment every week or two weeks helps you and your family budget better. Some months that have an extra week may also allow you to pay additional payments off to help push your load down faster.
Let’s take a look at this example below:
If you pay $2,000 each month over a 12 month period, then in a year you pay $24,000 for the mortgage. But if you choose the bi-weekly option, you pay $1,000 every two weeks totalling to $26,000 a year. The extra amount of $2,000 a year can greatly contribute to bigger savings in the long run. Once you choose to accommodate this type of payment plan, it will help decrease the time of payment for a 30-year mortgage loan by at least 4 – 5 years.
2) Tweak your budget
Look out for applicable savings in your budget and use it to pay extra money on your mortgage. This will help lessen the amount of the principal balance and shorten the number of months for your mortgage as well. When buying something, think about whether you need it or whether you want it. If you don’t need it right away why not add that additional money on your mortgage to get it paid off faster.
3) Pay using your bonuses
For families and professionals who have bonuses such as:
- Performance Bonus
- Christmas Bonus
- Profit Sharing
- Gain Sharing
- Spot Bonus Award
- Sign-Up Bonus
- Mission Bonus
- Referral Bonus
- Retention Bonus
- Holiday Bonus
- Sales Commission
These can be used to make extra payments on the remaining balance of your mortgage loan and can assist you in quickly paying off the mortgage. If you can, transfer any bonus you receive directly to your mortgage to avoid spending it on unimportant expenses.
4) Go for a short-term loan
If you apply for a 30-year mortgage loan ask for your mortgage provider to change it into a 15-year mortgage loan if you can pay the repayments. This will speed up the payment of the mortgage loan faster and chances are you and your family can get an excellent interest rate too. Rule of thumb is that these shortened loan terms are often provided with lesser interest rates. And due to the shortened time frame, you’ll end up paying a lot less in interest.
5) Utilize annual tax refund
If you’re still eligible to receive an annual tax refund, then you can use this credit as an advantage to pay off your mortgage loan. Pay it directly on the remaining principal balance and this can help to bring the amount down faster. Any extra money you add on your mortgage can go a long way to getting it paid off faster.
6) Find out about professional privileges
A few mortgage providers provide extra special promotions for certain professionals. Say for example you’re a licensed engineer, a CPA, or a highly-qualified medical professional, a few mortgage providers waive the fees for LMI (Lenders Mortgage Insurance) or allow you to borrow at a higher loan cost ratio (which can be up to 90 percent) before charging you with LMI. This gives you and your family a better way to start paying the mortgage loan off.
Paying off your mortgage will take time and careful planning, however with the tips mentioned above you can your family may be able to pay your home loan off faster so you can enjoy your home without having repayments hanging over your head for 30+ years. Are you planning to pay your home loan off faster?